The IRS has issued Notice 2024-35, which guides certain required minimum distributions for 2024. Notice 2024-35 also states that final regulations regarding RMDs will not apply before the 2025 distribution calendar year. Here is a review of the guidance.
On April 3, 2024, the DOL released its final rule amending Prohibited Transaction Exemption 84-14. The inclusion of foreign crimes modernizes PTE 84-14 in light of the increasing globalization of the financial services sector, and the increase in asset management and equity thresholds ensures that the exemption remains limited to large managers.
In Perkins v. United Surgical Partners International, Inc., the court concluded that Defendants failed to refute the Plaintiffs' allegations about the more expensive retail shares and that the Plaintiffs sufficiently allege a plausible breach of the duty of prudence. Concerning recordkeeping costs, the court concluded that the Plaintiffs' allegations about the Plan's costs in comparison to other similar plans are sufficient to survive dismissal.
Paychex plans to fight a New York retirement lawsuit, alleging fiduciary breach, but argues that it belongs in a federal court because the court is the correct authority for a case under ERISA, a federal law.
In a 2022 study by LIMRA, 60% of retirement plan participants in the study felt that communications about their plan were "ineffective." This lack of productive communication may lead to lower enrollment, and indifference about plan benefits, and perhaps contribute to overall employee apathy, morale, and productivity issues. Here are some insights on how to successfully reach participants about their retirement plan in a way they understand and is meaningful to them.
More than a thousand Canadian baby boomers are making the CPP/QPP claiming decision every day. An overwhelming majority (9 in 10) choose to claim benefits by age 65, whether due to natural human bias, general lack of awareness of how CPP/QPP programs work, or common financial planning practices. In this paper, Dr. Bonnie-Jeanne MacDonald, Director of Financial Security Research for the NIA, explains why people claim these benefits earlier than they should, why better-claiming behavior is important, the obstacles to progress, and what a paradigm shift would look like.
On April 16, the IRS issued guidance on certain specified required minimum distributions for 2024. It adds that the final regulations it plans to issue related to RMDs will apply for purposes of determining RMDs for calendar years beginning on or after Jan. 1, 2025. The guidance is contained in Notice 2024-35 and is outlined here.
The DOL final amendment to Prohibited Transaction Class Exemption 84-14, the QPAM Exemption is commonly relied upon by investment managers for ERISA-governed employee benefit plans and individual retirement accounts to avoid potential prohibited transaction issues, was published in the Federal Register on April 3, with the changes becoming effective on June 17, 2024. This article reviews the key changes to the exemption.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
